BIDs were established under the Local Government Finance Act (2003) and are fundamentally a fair and equitable way to deliver the key additional services that businesses want.
Since passed by legislation in 2004, Business Improvement Districts (BIDs) have proven to be an effective way in which businesses can can work together, take control and improve their trading environment. You as a business will have the opportunity to identify projects that you want to introduce and be given a say in how your money is spent through the Beddington BID.
You can complete the BID Survey here: www.surveymonkey.com/s/BeddingtonBID
Why Beddington and Why Now
There are close to 200 established Business Improvement Districts (BIDs) across the UK with 42 in London alone. Mayor of London, Boris Johnson has a vision for there to be 50 BIDs in London by 2015 and in his 2012 electoral manifesto the Mayor made a commitment to actively support the establishment of new BIDs across the capital.
The Greater London Authority (GLA) commissioned a research paper towards the end of 2012 to get a better understanding of the current and future activities of London’s BIDs and their potential to contribute to economic growth and other mayoral objectives. One of the primary recommendations of the report was for the Mayor to help facilitate the establishment of new BIDs in London by lessening the burden of set up costs through a small grants programme. This grants programme is available to High Streets, Industrial estates and City Centre localities who want to set up a new BID and are no further than 12 months away from a BID ballot.
London Borough of Sutton applied for this grant in respect of Beddington Industrial Area and in October 2014 they were notified that Beddington had been chosen as the first industrial BID development the GLA would support through to the ballot stage in October 2015. The GLA and Sutton Council are co-financing the BID development so that businesses in Beddington Industrial Area are offered the opportunity of working together to form a Business Improvement District.
What are BIDs?
BIDs are an arrangement whereby businesses come together and decide which improvements they feel could be made in their town / city / industrial area and also how they will implement these improvements and what it will cost them.
BIDs are financed and controlled by the businesses within the selected area. BIDs can run for a maximum of five years and during this time they must be able to show that they are benefitting the businesses which fund it.
How are BIDs funded?
A Business Improvement District (BID) is an area within which local businesses agree, through a local ballot, to pay an additional charge on their business rates.
BID levy is typically calculated at between 1-2% of a business premises rateable value (rv).
If BID levy was set at 1% rv in Beddington this could raise up to £250,000 each year for the five year project term. That’s £1.25 million additional investment in Beddington, to be spent in accordance with the business plan that businesses have created.
If BID levy is Beddington was set at 1% rv, 50% of businesses in Beddington Industrial Area would pay on average £190 per annum as their contribution. These funds are managed by an independent business-led company, made up of businesses within Beddington Industrial Area.
This Not for Profit company managed by businesses and overseen by the Local Authority seeks to guarantee, improve and enhance services and environmental conditions of this defined geographic area of commercial activity.
What can BIDs deliver?
It’s up to you as a business to help shape what the BID in Beddington might deliver. BIDs can deliver any projects or services that are agreed by the businesses in the BID area. These projects must go over and above anything that is already provided through business rates and by the local authority as BIDs can not duplicate anything already provided for by the Public Sector; BIDs add value.
This is your BID – you decide the projects
How will the process work?
The aims of a BID are outlined by the businesses in the area, primarily through a survey.
The Beddington BID survey can be completed here: www.surveymonkey.com/s/BeddingtonBID
We encourage as many businesses landlords and stakeholders to complete a survey so that we have a clear picture of your priorities and the key projects you would want a BID to implement
After the initial BID survey, your priorities for the Beddington BID will be collated and you will be invited to attend one of a series of informal business meetings where you will be updated on the progress of the BID and you will be able to ask questions and give feedback – this is part of the detailed consultation phase.
After this, the BID Steering Group (made up of businesses in the area) will assist in producing a detailed, costed business plan which will then be sent out to all 191 businesses for feedback.
Once we have amended the Business Plan to reflect your feedback it will be published and circulated to all.
Finally, there will be a confidential postal vote on whether you wish to say yes to a BID in Beddington.
If a majority of businesses vote in favour of a BID, a five year BID term commences and the projects and improvements get underway overseen by a Board of businesses that you can be a part of.
Whether the BID goes ahead is up to you – this is your BID
Why do businesses support BIDs?
BIDs have proven to increase footfall to an area, reduce crime and improve services. As they can run for up to five years they also give businesses the opportunity to plan ahead and future proof their area.
BIDs put the control into the hands of the businesses themselves. BIDs do not substitute services provided through business rates, they provide additional services.